{"title":"Executive power discrepancy and corporate ESG greenwashing","authors":"","doi":"10.1016/j.irfa.2024.103533","DOIUrl":null,"url":null,"abstract":"<div><p>Originating from the theory of organizational hierarchy, the concept of power discrepancy among corporate executives has garnered scholarly attention due to its roots in the unequal distribution of authority and influence within the upper echelons of management. This paper explores the realm of corporate ESG greenwashing, a deceptive practice masking genuine environmental, social, and governance responsibilities, and empirically investigates the influence of executive power discrepancies on such practices. Findings indicate a direct correlation between increased executive power discrepancies and a heightened propensity towards ESG greenwashing. Furthermore, the impact of this discrepancy is notably more pronounced in non-state-owned entities, corporations operating in highly marketized regions, and those with substantial financing constraints. This study contributes to the nuanced understanding of how disparities in executive power shape corporate ESG conduct, enriches the discourse on corporate governance structures, and fosters the evolution of theories related to internal governance and social accountability, offering vital practical insights.</p></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":null,"pages":null},"PeriodicalIF":7.5000,"publicationDate":"2024-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Review of Financial Analysis","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1057521924004654","RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
Originating from the theory of organizational hierarchy, the concept of power discrepancy among corporate executives has garnered scholarly attention due to its roots in the unequal distribution of authority and influence within the upper echelons of management. This paper explores the realm of corporate ESG greenwashing, a deceptive practice masking genuine environmental, social, and governance responsibilities, and empirically investigates the influence of executive power discrepancies on such practices. Findings indicate a direct correlation between increased executive power discrepancies and a heightened propensity towards ESG greenwashing. Furthermore, the impact of this discrepancy is notably more pronounced in non-state-owned entities, corporations operating in highly marketized regions, and those with substantial financing constraints. This study contributes to the nuanced understanding of how disparities in executive power shape corporate ESG conduct, enriches the discourse on corporate governance structures, and fosters the evolution of theories related to internal governance and social accountability, offering vital practical insights.
期刊介绍:
The International Review of Financial Analysis (IRFA) is an impartial refereed journal designed to serve as a platform for high-quality financial research. It welcomes a diverse range of financial research topics and maintains an unbiased selection process. While not limited to U.S.-centric subjects, IRFA, as its title suggests, is open to valuable research contributions from around the world.